In the first half of 2024, Sothema, Morocco’s leading pharmaceutical company, navigated a global economic recovery while benefiting from the gradual rollout of Universal Health Coverage (CSU) on the domestic front. These factors helped the group sustain its robust growth trajectory, strengthening its market leadership in Morocco and advancing its international expansion efforts. Sothema’s consolidated revenue reached 1.328 billion dirhams, marking a 12.1% increase compared to the same period in 2023.
Accelerated international expansion
Sothema’s push into international markets bore fruit, with exports growing by 10.2% to 139 million dirhams, now accounting for 10.5% of the group’s total revenue. This surge was fueled by rising demand from international markets, particularly in Africa and Saudi Arabia. The group’s international subsidiaries also delivered solid performances, notably West Afric Pharma in Senegal, which launched a new production line for liquid medicines. Additionally, Sothema expanded its presence by opening two new branches in Saudi Arabia and Côte d’Ivoire, bringing its total number of international subsidiaries to four. In Iraq, the company introduced 30 new products, further solidifying its footprint in the region.
Growth in manufacturing and outsourcing
Sothema’s core business of manufacturing and outsourcing continued to grow, contributing 66.3% of the group’s revenue, up from 65% during the same period last year. This reflects the company’s commitment to developing its own products and bolstering the “Made in Morocco” brand.
New product launches and high-value therapeutic areas
In its drive to diversify and enhance its product portfolio, Sothema introduced seven new products in the first half of 2024, including four targeted at priority therapeutic areas such as diabetes and cardiology. These launches generated 12 million dirhams in revenue and underscore the company’s focus on high-value segments. Sothema’s efficient “Time to Market” strategy has allowed for a quicker rollout of new products, reinforcing its competitive edge in these critical health sectors.
Strong innovation and regulatory milestones
Innovation remains a key pillar of Sothema’s strategy, with the company expanding its portfolio to include biologics, generics, biosimilars, cannabis-based treatments, supplements, and medical devices. The first half of 2024 saw an active regulatory period with the submission of nine marketing authorization applications (AMM) and the approval of 12 new health products.
Sothema also reinforced its commitment to scientific development by signing a strategic agreement with the Foundation for Research, Development, and Innovation in Science and Engineering. This partnership aims to support Moroccan PhD students working on health and pharmaceutical industry projects.
Strategic investments
As of June 2024, Sothema invested 23 million dirhams, up from 22 million in the same period last year, primarily to expand its industrial and technological capacities. One major initiative is the development of an injectable cartridge manufacturing line, the first of its kind in Morocco, intended for advanced treatments like insulin glargine and dental anesthetics. This project, expected to be operational by 2025, will further strengthen Sothema’s position both domestically and internationally.
Improved profitability
Sothema’s consolidated EBITDA grew by 14.4%, reaching 291 million dirhams in the first half of 2024. This improvement was driven by:
- A favorable shift toward higher-value therapeutic areas.
- Increased international sales.
- Continued control over external costs.
Despite rising financial charges due to accelerated business activities, the group’s net profit increased by 8%, totaling 164 million dirhams.
Future outlook
Sothema’s strategic positioning and ambitious expansion projects have set the stage for capitalizing on both local and international pharmaceutical opportunities. By diversifying its portfolio with innovative and affordable medical products, the group stands to benefit from the ongoing expansion of Universal Health Coverage, which is already positively impacting sales.
Sothema plans to launch eight new products by the end of 2024, including four in oncology, a key growth area. On the international front, the group expects a surge in revenue, particularly from delayed orders in Senegal and continued penetration in Gulf markets. As a result of its development efforts, Sothema anticipates further improvements in its financial performance during the second half of 2024.
